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Red Capitalism
Book

Red Capitalism

The Fragile Financial Foundation of China's Extraordinary Rise

Carl E. Walter and Fraser J.T. Howie
Wiley, 2011

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Editorial Rating

8

Qualities

  • Innovative

Recommendation

This insider’s report on China’s version of capitalism tells a revealing story about an economy that is poised to become the world’s largest. Asia banking experts Carl E. Walter and Fraser J.T. Howie expose the interconnections of a financial system dominated by the Communist Party; the conflicts among ruling families, corporate executives and technocrats – each vying for political and personal gain; and the challenges opaque, state-run companies present to Western investors. The authors delve into the byzantine, often clandestine machinations behind the modern and sophisticated screen China presents to the rest of the world. The book provides a detailed account of major players, agencies and policies, as well as an advanced-level financial analysis of the banking and capital market sectors. The book’s most interesting points sometimes bog down in historical details, but patient readers reap rewards. getAbstract recommends this extraordinary behind-the-scenes look to those who want to know what’s really driving China’s dazzling growth. Surprisingly, this is a story most people do not know.

Take-Aways

  • China’s economic development dazzles outsiders, but in the 1970s, the country was on the verge of bankruptcy.
  • When then-premier Deng Xiaoping went to the United Nations in 1974, his delegation could only find $38,000 in state funds to pay for the trip.
  • Communist Party cadres, not market forces, rule China’s financial markets.

About the Authors

Carl E. Walter worked in China’s financial sector for 20 years; he held a senior position in China’s first joint venture investment bank. Fraser J.T. Howie is managing director of a brokerage firm in Singapore.

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